Oil rises with U.S. gasoline supply concerns

Oil prices edged up on Thursday as fears about U.S. gasoline supply pulled the complex higher, overshadowing concerns of weakening economic output in the euro zone.

Gasoline prices rose more than 2 percent on the expectation that a busy refinery maintenance season could draw down stockpiles, despite current healthy levels.

“About the only thing going on is a panic attack regarding gasoline. There is a fear in the marketplace that gasoline supplies will fall short,” said Tim Evans, an energy analyst for Citi Futures Perspective.

Gasoline inventories on the U.S. East Coast rose to their highest in nearly a year, according to government data on Wednesday.

“We have the data over on one side of the balance here, and we have this surging price that reflects anxiety over the future on the other,” Evans said.

Brent crude oil edged up 12 cents to settle at $118.00 per barrel. April Brent futures became the front-month contract on Thursday. U.S. crude rose 30 cents to $97.31.

The U.S. RBOB gasoline contract settled up more than 8 cents per U.S. gallon at $3.1166.

European data dampened expectations of higher oil demand. Euro zone economic output fell 0.6 percent in the final quarter of 2012, according to the European Union’s statistics office. This was greater than the 0.4 percent decline expected by analysts polled by Reuters.

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